Netflix Inc (NASDAQ: NFLX) is scheduled to release its first-quarter results after the market closes on Thursday, April 16. JPMorgan expects the streaming company to maintain its 2026 revenue growth guidance at 12%-14% and raise its operating margin outlook from 31.5% to 32%.
The Netflix Analyst: JPMorgan analyst Doug Anmuth reiterated an Overweight rating and price target of $120.
The Netflix Thesis: The company is likely to raise its 2026 operating margin outlook, due to the lack of deal expenses after its recent M&A efforts, Anmuth said in the note.
Netflix could announce higher share repurchases, driven by the $2.8 billion in termination fee and the share price being "opportunistic," he added.
The U.S; price hikes by the company could drive more than $1.7 billion in annualized revenue off the 2025 base and contribute around 250 basis points (bps) to revenue growth in 2026, even without upside from international price increases, the analyst stated.
Netflix could leave its 2026 revenue growth guidance unchanged. Some of the price hike is likely already factored into the outlook. And the currency impact is less favorable than in the fourth quarter.
Anmuth projected contact currency revenue growth of +13% in 2026. This reflects revenue of $51.7 billion, which is at the high end of the guidance.
The stock is considered a safer haven amid elevated macro and geopolitical risks. Still, it may remain under pressure in the near term due to the "greater risk-on environment," he said.
Addressing investor concerns around engagement, the analyst noted that Netflix's engagement grew 2% year-on-year in the back half of 2025. "We do not believe engagement growth necessarily correlates with revenue growth on a platform of this scale," he further wrote.
NFLX Price Action: Shares of Netflix had declined by 0.51% to $101.57 at the time of publication on Friday.